It is well known to apply labels to a stream of product items or the like on a continuous basis. Normally pressure-sensitive adhesive labels are stored on a backing strip or carrier from which the labels are peeled and applied to the surface of a product item or the like. Generally the label is removed from the carrier strip by pulling the strip around a sharp edge. The inherent stiffness of the label material is sufficient to overcome the adhesion of the label to the carrier strip, so that the label separates from the carrier strip as the strip bends sharply around the peeling edge. As the label is peeled in this manner off the carrier strip, it is pressed against the adjacent surface of a product item, the items being moved in a continuous stream pass the point at which the labels are applied.